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Data included in dataset.
Column Column title Variable
A FIPS FIPS code identifying each state
B Year Variable denoting the year and ranges from1994 to 2008
C Fatalities Fatalities from automobile accidents
D DPVM Fatalities per 100 million vehicle miles driven
E SGasTax State tax on gasoline, $/gallon
F RSGasTax Real state tax on gasoline, 2009$/gallon
G CigTax State tax on cigarettes, dollars per 20-pack
H SpTax State tax on spirits, dollars per gallon
I WineTax State tax on wine, dollars per gallon
J BeerTax State tax on beer, dollars per gallon
K RuralInterstateVMD Vehicle-miles driven in a year on rural interstates, 100 million
L RuralTotalVMD Vehicle-miles driven in a year on all rural roadways, 100 million
M UrbanInterstateVMD Vehicle-miles driven in a year on urban interstates, 100 million
N UrbanTotalVMD Vehicle-miles driven in a year on all urban roadways, 100 million
O PU20 Percent of licensed under the age of 20
P PU25 Percent of licensed under the age of 25
Q PO70 Percent of licensed over the age of 70
R PO75 Percent of licensed over the age of 75
S PO80 Percent of licensed over the age of 80
T PO85 Percent of licensed over the age of 85
U BACPS Dummy variable equal to 1 if the state has adopted the 0.08 BAC per se law; 0 otherwise
V RMFI09 Median family income in a state in 2009 dollars

    Exercises

  1. At this point in your thesis you would want to point out that each of the variables in the data set are proxies for the variables discussed in part 2 of your paper. As an exercise explain how each of the explanatory variables in Table 2 are proxies for the explanatory variables mentioned in the theory section.
  2. It would seem that the "cleanest" variable in the whole data set is "fatalities." Lookup the official definition of how a fatality from an automobile accident is measured. Does this variable still seem to have a clear and unequivocal meaning?

Empirical estimation

Now we are almost ready to present the estimation results from the model. There are a few things we need to cover before we move to presenting the estimation results. First, what, if any, are the econometric issues raised by the model and the data set? In this case we are using a panel data set to estimate the regression:

f p v m d i t = β 0 + j = 1 k 1 β j x j i t + β k D i t B A C + ε i t , MathType@MTEF@5@5@+=feaagyart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVCI8FfYJH8YrFfeuY=Hhbbf9v8qqaqFr0xc9pk0xbba9q8WqFfeaY=biLkVcLq=JHqpepeea0=as0Fb9pgeaYRXxe9vr0=vr0=vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaaiaadAgacaWGWbGaamODaiaad2gacaWGKbWaaSbaaSqaaiaadMgacaWG0baabeaakiabg2da9iabek7aInaaBaaaleaacaaIWaaabeaakiabgUcaRmaaqahabaGaeqOSdi2aaSbaaSqaaiaadQgaaeqaaOGaamiEamaaBaaaleaacaWGQbGaamyAaiaadshaaeqaaaqaaiaadQgacqGH9aqpcaaIXaaabaGaam4AaiabgkHiTiaaigdaa0GaeyyeIuoakiabgUcaRiabek7aInaaBaaaleaacaWGRbaabeaakiaadseadaqhaaWcbaGaamyAaiaadshaaeaacaWGcbGaamyqaiaadoeaaaGccqGHRaWkcqaH1oqzdaWgaaWcbaGaamyAaiaadshaaeqaaOGaaiilaaaa@5DBD@

where fpvmd it is the number of fatalities per 100 million vehicle miles driven in state i in year t, the x jit is the j th explanatory variable in state i in year t, and D i t B A C MathType@MTEF@5@5@+=feaagyart1ev2aqatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVCI8FfYJH8YrFfeuY=Hhbbf9v8qqaqFr0xc9pk0xbba9q8WqFfeaY=biLkVcLq=JHqpepeea0=as0Fb9pgeaYRXxe9vr0=vr0=vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaaiaadseadaqhaaWcbaGaamyAaiaadshaaeaacaWGcbGaamyqaiaadoeaaaaaaa@3B1B@ is the dummy variable equal to 1 if state i has a 0.08 per se BAC law in year t . From a policy point of view what we are interested in is the sign of β k MathType@MTEF@5@5@+=feaagyart1ev2aqatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVCI8FfYJH8YrFfeuY=Hhbbf9v8qqaqFr0xc9pk0xbba9q8WqFfeaY=biLkVcLq=JHqpepeea0=as0Fb9pgeaYRXxe9vr0=vr0=vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaaiabek7aInaaBaaaleaacaWGRbaabeaaaaa@38A6@ and if β k MathType@MTEF@5@5@+=feaagyart1ev2aqatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVCI8FfYJH8YrFfeuY=Hhbbf9v8qqaqFr0xc9pk0xbba9q8WqFfeaY=biLkVcLq=JHqpepeea0=as0Fb9pgeaYRXxe9vr0=vr0=vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaaiabek7aInaaBaaaleaacaWGRbaabeaaaaa@38A6@ is statistically different from zero. At this point it would be appropriate to discuss whether you intend to use a fixed effects or a random effect model. In the interest is simplicity, we will use a fixed effects model but in your own research you would need to consider using either model.

A second issue that needs to be considered is if you plan to use a linear model as specified above or if you might use the natural logarithm of the fatality rate. Since we have no a priori reason to believe that the relationship between the fatality rate and the explanatory variables are linear, we will estimate both log-linear and a log-log models. In this way we can test if our policy conclusions are sensitive to the mathematical specification of our model.

Questions & Answers

where we get a research paper on Nano chemistry....?
Maira Reply
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Google
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
revolt
da
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Econometrics for honors students. OpenStax CNX. Jul 20, 2010 Download for free at http://cnx.org/content/col11208/1.2
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